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Showing posts with label sm prime holdings. Show all posts
Showing posts with label sm prime holdings. Show all posts

Thursday, May 16, 2013

Stock News 2013: SM inaugurates SM Aura at Global City

English: SM Supermalls logo
English: SM Supermalls logo (Photo credit: Wikipedia)

Tycoon Henry’s Sy’s SM Prime Holdings has debuted in Bonifacio Global City with the launch of SM Aura, a state-of-the-art civic center with office and retail space that was built as a partnership with the City of Taguig.

SM Aura, which has a gross floor area of 234,892 square meters, is an integrated development that incorporates office towers, a chapel, a convention center, and a mini-coliseum, supported by a retail podium with an upscale look and feel.

“We are glad to be given this opportunity to work with the city of Taguig in building a state-of-the-art civic center which will redefine the city’s landscape. We support Taguig’s bid to be a world-class city as SM Aura is an innovative concept with its fashion, dining, entertainment, business and lifestyle selections and ground-breaking architecture and first-rate design that will appeal to other cities that want to showcase their best for the world to see,” SM Prime president Hans Sy said in a press statement on Thursday, during the blessing of the new structure.

With this new complex, the SM group said it aimed to transform Taguig’s town center into a “landmark and prestigious address, showcasing the best in building design and environmental sustainability, with superior engineering, cutting-edge technology and modern facilities for conventions, exhibits and other community events.”

SM Aura also aims to be one of the first civic centers in the country to be certified Gold under the US Green Building Council Leadership in Energy and Environmental Design (LEED) program, an internationally recognized green building program established in 135 countries.

Designed by the Miami-based architectural firm Arquitectonica, the design of this building forms three curvilinear ribbons evocative of a tree extending its roots. Each ribbon is subdivided to form large staggered windows at the northern end. At the southern end, the three ribbons turn vertically to form the office towers, with each ribbon being slightly angled and finishing at different levels.

A dome-shaped, state-of-the-art, 1,000-seat event hall to be named “Samsung Hall” will serve as a  venue for concerts, stage performances, plays, and product launches. A modern arched structure forms the roof of The Chapel of San Pedro Calungsod, which can seat 250 people.

For anchor tenants, the civic center has SM Department Store and SM Supermarket, as well as the Trade Hall, Foodcourt, two regular Cinemas, two Director’s Clubs and an IMAX Theater. It will also house a convention center that has three main function rooms and eight meeting rooms.

NBA Café is also making its first entry into the Philippines in this structure. SM Aura will also have Trattoria Chef Chris of the famed My Kitchen By Chef Chris at Paco Park, as well as well-known restaurant brands like Lugang Café and Yabu.

In cooperation with Manila Hotel, SM Aura also plans to bring in the Champagne Room at the terrace of SM Aura’s Sky Park, a favorite venue for elegant gatherings and celebrations.

Aside from the NBA Café, Boulangerie Paul, and Todd English Food Hall will be making their debut at SM Aura. To enhance the shopping experience, SM Aura will also provide a host of global brands opening in the Philippines for the first time such as Suiteblanco, Stefanel, Minelli, TM Lewin, J. Lindberg, B.B. Dakota and River Island for fashion.

“SM Prime, through SM Aura, has a remarkable opportunity to lead the shift to sustainability in buildings. SM Aura has set a higher standard with high performance technologies that use less energy, consume less water, and leave a smaller footprint on the city’s resources,” Sy said.



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Sunday, April 28, 2013

Stock News 2013: SM profit jumps 22% in Q1

SM Prime Holdings
SM Prime Holdings (Photo credit: Wikipedia)

SM Investments Corp. (SMIC), the investment holding vehicle of the country’s richest man Henry Sy Sr., will outpace its targeted profit growth this year on the back of a 22-percent jump in first quarter earnings, top company executives said.

“From the figure I saw from the first quarter, I feel that we can have the range of about 15-17 percent (income growth),” said SMIC chief finance officer Jose Sio.

In its 2013-2015 plan, SMIC targets its profits to grow 12-15 percent annually, supported by the company’s continuous expansion.

But in the first quarter this year, its net income climbed 22 percent to P7.4 billion as revenues rose 15 percent to P56.8 billion from P49.6 billion a year ago.

“The growth was driven by the surge in earnings of SM’s banking business, coupled with strong earnings growth from SM’s mall and property businesses,” the company said.

“With the continuing rise in remittances from overseas Filipinos, the expansion of the country’s outsourcing sector and the recent credit upgrade of the Philippines to investment grade, we are confident of achieving even better results in the second quarter and beyond,” said SMIC president Harley T. Sy.

Of the first-quarter profits, SMIC derived 59.7 percent from banking (BDO Unibank Inc.), 15.8 percent from malls (SM Prime Holdings Inc.), 14.1 percent from retail operations (SM Retail Inc.) and 10.4 percent from property (SM Development Corp. and SM Land).

The trend regarding income contribution will continue given the strong financial sector in the Philippines, Sio said.

BDO’s earnings surged 257 percent to P10 billion in the first quarter as net interest income climbed 14 percent to P9.6 billion on the back of a 16-percent growth in customer loans and a nine-percent uptick in total deposits.

The country’s largest bank in terms of assets expects its full-year income to reach P20.4 billion.

Mall developer and operator SM Prime recorded a 15-percent gain in consolidated net income to P2.8 billion in the first three months of the year. Its revenues grew 11 percent to P7.8 billion.

SM Prime said its five malls in China contributed P700 million in revenues, up nine percent from last year.

SM Prime has 46 malls in the Philippines with a total gross floor area of 5.6 million square meters (sqm). In China, it has five malls with a total gross floor area of 0.8 million sqm.

For its part, SM Retail reported an income of P1.2 billion, up four percent from last year as sales rose 5.8 percent to P36.4 billion.

As of end-March, SM Retail had 201 stores consisting of 46 SM Department stores, 37 SM Supermarkets, 37 SM Hypermarkets and 81 SaveMore stores, up from just 176 stores in the same period last year.

SM’s property group recorded a net income of P1.8 billion, up 19 percent from last year. SMDC accounted for 76 percent of earnings.

In the first quarter, SMDC’s consolidated net income rose 12 percent to P1.4 billion.

The developer will launch four new projects this year that will introduce 13,000 condominium units to the market.


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Wednesday, April 24, 2013

Stock News 2013: Supreme Court affirms dismissal of civil case vs SM Prime Holdings

English: Skyline of Cebu City
English: Skyline of Cebu City (Photo credit: Wikipedia)

The Supreme Court affirmed the decision of the Pasig City Regional Trial Court in dismissing the civil case filed against SM Prime Holdings Inc. for non-payment of P76.8 million amusement tax incentive reward from 2003 to 2008.

In a decision by the high court’s first division through Associate Justice Martin Villarama, the Pasig Court’s ruling is proper and does not indicate that it is abdicating its jurisdiction over the case.

The Film Development Council of the Philippines filed the case against SM to collect the P76,836,807.08 from SM Cebu.

The civil case in Cebu, meanwhile, was filed by the Cebu City Government seeking to declare as invalid a provision of Republic Act 9167 or the law creating the Film Development Council of the Philippines which requires cities and municipalities in Metropolitan Manila and highly urbanized cities nationwide to deduct from theaters and cinemas amusement tax that will be used as reward for film producers who can make high quality films.

Cebu City government argued that the provision violates the Local Government Code specifically the provision which gives LGUs taxing power.

SM sought to dismiss the case filed in Pasig saying it has been religiously remitting amusement tax to the Cebu City government and informed the court of a similar case in Cebu, adding that its motion for intervention with the Cebu Court has been granted.

The Pasig Court granted SM’s motion to dismiss on the ground that there is a pending case in a Cebu Court.

The high court in its ruling agreed with the Pasig Court’s ruling that the Cebu Court is in the best position to rule over the case.

“A party is not allowed to vex another more than once regarding the same subject matter and for the same cause of action. This theory is ‘founded on the public policy that the same subject matter should not be the subject controversy in courts more than once, in order that possible conflicting judgments may be avoided for the sake of the stability of the rights and status of persons and also to avoid the costs and expenses incident to numerous suits,” the high court said.


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Saturday, November 3, 2012

Stock News 2012: ALI, SM Prime win real estate awards

SM Prime Holdings
SM Prime Holdings (Photo credit: Wikipedia)

Ayala Land Inc. and SM Prime Holdings, Inc have been recognised for their high standards by the Asia Pacific Real Estate Association (APREA) in the APREA Best Practices Awards 2012.

The APREA Best Practices Awards are open to all real estate companies and trusts listed on a regional stock exchange. As with previous years, there has been overwhelming response from high-quality organizations from countries around the region, including Australia, India, China, Japan, Malaysia, New Zealand, Singapore and the Philippines. In all, organizations from nine different jurisdictions lodged submissions.

Winners were chosen based on how an organization has contributed to providing greater transparency and comparability in their local market and the region. Submissions were also judged on the extent of which they have adopted recommendations in the APREA Best Practices Handbook in the categories of market disclosures, accounting and financial reporting, property valuation, portfolio performance reporting and corporate governance.

Ayala Land won awards for the best Philippines submission and merit awards in the areas of market disclosure and portfolio performance reporting. It also won an award as the best property development organisation in the Emerging Markets category. SM Prime won a merit award in the area of corporate governance.

Lim Swe Guan, CFA, chairman of the board of APREA says, “We are delighted with the level of best practices demonstrated by the companies who submitted for the awards this year. We continually encourage members to adopt the most up-to-date valuation techniques, adhere to international financial reporting standards and follow good corporate governance. Combined with a greater transparency of portfolio performance and provision of reliable timely information to investors, we believe this will lead to higher investor confidence and wider support for the industry. We are confident that with the support of our members, who are leaders in their field, we can make real estate a crucial part of every investor’s portfolio.”

Peter Mitchell, chief executive officer of APREA said “We would like to extend our congratulations to Ayala Land and SM Prime Holdings as industry leaders in best practices. These awards are held annually to highlight the importance of the recommendations in APREA’s Best Practices Handbook, which has emerged as a clear benchmark for the region for managing and reporting performances since it was first published in 2009.”

APREA has developed best practices to streamline performance measurement and reporting for the real estate investment industry in the region. The APREA Best Practices Handbook, currently in its second edition, is intended to be a living document and will be regularly modified, updated and added to. It contains a series of recommendations for adoption by the industry in the following areas:

• Accounting and financial reporting guidelines

• Property valuation Corporate governance

• Portfolio performance reporting

• Market disclosures


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Friday, August 3, 2012

Stock News 2012: SM Prime allots P63 B for Phl, China expansion

English: SM Supermalls logoEnglish: SM Supermalls logo (Photo credit: Wikipedia)SM Prime Holdings Inc., the country’s largest retail landlord, has set a P63-billion three-year capital spending plan to rapidly expand its presence here and in China in its bid to become a regional player.

SM Prime chief financial officer Jeffrey C. Lim said the company is spending P21 billion each year to build four to five new malls at home and one mall annually in China to take advantage of rising consumer spending.

He said the company plans to open up to 18 malls in the next three years.

He said funding for the massive expansion will come from a combination of internally-generated cash and borrowings.

SM Prime expects to end the year with a total of 46 malls across the country and five in China, with an estimated combined gross floor area of 6.3 million square meters.

Earlier this year, it opened SM City Olongapo in Zambales, SM City Consolacion in Cebu and SM City San Fernando in Pampanga. Three more malls are expected to open in the second half - SM City Gen. Santos in South Cotabato, SM City Lanang in Davao City and SM Chongqing in China.

SM Prime’s four malls in China, located in the cities of Xiamen, Jinjiang, Chengdu and Suzhou, contributed P320 million or seven percent to the company’s aggregate earnings. Combined revenues amounted to P1.27 billion or nine percent of total.

The SM China malls are enjoying healthy increases in rental rates, with average occupancy level now at 95 percent.

SM Prime said it continues to see vast opportunities in China given the world’s second largest economy’s growing population and emerging middle class.

The group is currently looking to acquire five properties in its second biggest market. It wants to reach new markets to further widen its geographical footprint.

The expansion is also in line with the SM Group’s strategy to list its China assets either in Hong Kong or Singapore by 2015 in a public offering that could fetch proceeds worth up to $500 million.

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Monday, July 30, 2012

Stock News 2012: SM Prime posts P2.5-B net earnings in Q2

SM City Cagayan de OroSM City Cagayan de Oro (Photo credit: Wikipedia)
Shopping mall giant SM Prime Holdings Inc. reported better-than-expected financial results in the second quarter with net earnings rising 16 percent to P2.49 billion.

This brings SM Prime’s six-month net income to P4.92 billion or 15 percent higher than the P4.27 billion recorded the previous period.

Revenues also climbed 15 percent to P14.57 billion while EBITDA (earnings before interest, taxes, depreciation and amortization) went up 12 percent to P9.71 billion

Operating income likewise increased 15 percent to P7.78 billion. The growth was attributed to the eight-percent rise in same-store sales, new store openings, and the improved performance of the group’s malls in China.

SM Prime’s four malls in China are located in the cities of Xiamen, Jinjiang, Chengdu and Suzhou with a total gross floor area of 0.6 million square meters. These contributed P320 million or seven percent of the company’s aggregate earnings.

In terms of gross revenues, these four malls pumped in P1.27 billion, accounting for nine percent of total.

The SM China malls are enjoying healthy increases in rental rates and improvement in occupancy levels. The average occupancy rate for the four malls in China is now at 95 percent.

“We are pleased to reach our targets for the first half of this year on the back of robust consumer spending and strong economic fundamentals. In line with this, we look forward to the second half of the year with more confidence in implementing our expansion plans, especially as we move towards the holiday season,” said SM Prime president Hans T. Sy.

Operating expenses likewise expanded 15 percent to P6.79 billion owing to higher administrative expenses particularly utilities, business taxes and manpower expenses.

SM Prime has 44 supermalls strategically located across the country with a total gross floor area of 5.3 million square meters.

Earlier this year, it opened SM City Olongapo in Zambales, SM City Consolacion in Cebu and SM City San Fernando in Pampanga. Three more malls are expected to open for the balance of the year -- SM City Gen. Santos in South Cotabato, SM City Lanang in Davao City and SM Chongqing in China.

By the end of the year, SM Prime will have 46 malls in the Philippines and five in China with an estimated combined gross floor area of 6.3 million square meters.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=832927

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Thursday, July 19, 2012

Stock News 2012: SMIC taps into $1-B cash pile for new investments

English: SM City Fairview in Quezon City, Metr...English: SM City Fairview in Quezon City, Metro Manila, Philippines. (Photo credit: Wikipedia)
With a massive cash pile of around $1 billion, retail tycoon Henry Sy’s SM Investments Corp. (SMIC) is in a strong position to take advantage of any interesting opportunities that may crop up, according to a top company official.

SMIC chief finance officer Jose T. Sio said the holding firm is awash with cash, having raised P15 billion from the recent issuance of seven to 10-year fixed rate bonds. “We’re very liquid. We have like P40 billion plus in cash. Aside from that, we still have an untapped credit line,” he said.

Sio said the group has been looking for fresh uses of its huge cash reserves.

SMIC officials said they are still keen on acquiring a significant stake in the private holding firm that owns the 16-hectare Greenhills shopping complex, which would allow the SM Group to capture the lion’s share of the retail market in the fast-growing Ortigas-Pasig-Mandaluyong area.

The interest remains even as the group led by Ignacio R. Ortigas entered into a strategic alliance with property giant Ayala Land Inc., allowing the latter to participate in the development of the family’s various properties which include large residential, office, retail and hotel components

The Ortigas family exercised its right of first refusal over British banking giant HSBC’s stake in OCLP Holdings Inc. in a deal valued at P11 billion.

Meanwhile, Sio said SMIC may do another fund-raising within the year to take advantage of the country’s bright economic prospects following an upgrade to the Philippines’ sovereign credit standing to a notch below investment grade. “It would probably be a combination of equity and debt,” Sio said.

Proceeds from future cash-raising activities will be used to refinance existing obligations and for investments, Sio said.

He said SMIC sustained its growth traction in the second quarter, mainly due to the country’s strong economic fundamentals. “The second quarter is a little better than the first quarter. Traditionally, the second quarter is stronger than the first because of the summer break and the opening of schools,” he said.

Sio also disclosed that the group, through SM Prime and SM Development Corp., is in talks to buy tracts of land in various areas in China. “The property we’re acquiring should be good for the next three to four years,” he said.

SM Prime chief financial officer Jeffrey Lim earlier said they were looking to acquire five more properties in China to support their aggressive expansion in the world’s second biggest economy.

China is the group’s second biggest market next to the Philippines.

For this year, SMIC has set a capital spending of around P54 billion to continue the expansion of its banking, shopping mall, and real estate businesses. The capital budget is higher than what it spent in 2011.


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Monday, July 2, 2012

Stock News 2012: SM eyes FTI property

SM Prime HoldingsSM Prime Holdings (Photo credit: Wikipedia)
The SM conglomerate of mall and banking tycoon Henry Sy is keen on joining the auction for a large block in state-owned Food Terminal Inc. (FTI) in Taguig.

Bagging the 74-hectare property, which was subject to numerous delays, will allow the company to pursue more mixed-use developments, an executive said.

In a chance interview, Henry Sy Jr., vice-chairman and chief executive of SM Development Corp., told The STAR that the SM group will join the bidding for the FTI property.

“Of course,” Sy said when asked if the SM group is interested to bid for the property.

“I will be interested,” Sy said, adding that the conglomerate is just waiting for the bidding terms.

Early this month, the Department of Finance’s Privatization Management Office announced that 74 hectares of the 103-hectare FTI agro-industrial complex is up for sale anew following three years of delay and three failed biddings.

The government will retain the rest of the property for various purposes. FTI is one of the largest industrial complexes in Metro Manila and is currently home to more than 300 companies.

“That will be perfect for mixed-use (development),” Sy said.

Sy said SM Development, for its part, will build high-end but affordable condominium projects in the area.

Holding firm SM Investments Corp. has five core businesses -- retail (SM Retail Inc.), malls (SM Prime Holdings Inc.), banking (BDO Unibank Inc. and China Banking Corp.), property (SM Development) and hotel and entertainment (SM Hotels and Conventions Corp.).

“The 70-hectare lot is large enough for landbanking. This would give them more available lots to develop, thus opening opportunities for additional revenue streams,” said Freya B. Natividad, investment analyst at brokerage firm 2Trade-Asia.com.

However, the SM group could end up competing with Ayala Land Inc. of the Zobels, Empire East Land Holdings Inc. of property tycoon Andrew L. Tan, Filinvest Land Inc. of the Gotianuns and Robinsons Land Corp. of the Gokongweis who were reportedly interested for the prime property.

The government last year scrapped its plan to sell the property for at least P13 billion as it reappraised the property.

http://www.philstar.com/Article.aspx?articleId=823009&publicationSubCategoryId=66

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Saturday, June 30, 2012

Stock News 2012: Ortigas family nixes SM offer, partners with Ayala

English: Picture of the Greenhills Shopping CenterEnglish: Picture of the Greenhills Shopping Center (Photo credit: Wikipedia)
The Ortigas family has exercised its right of first refusal over British banking giant HSBC’s 34-percent stake in Ortigas Holdings Inc., dealing a major blow to the Sy family’s plan to take over the firm that owns the 16-hectare Greenhills shopping complex.

Ayala Land Inc. (ALI) announced yesterday a strategic alliance with the group led by Ignacio R. Ortigas, allowing it to participate in the development of various properties owned by the Ortigas group.

The Ortigas family has matched the SM Group’s offer to acquire HSBC’s stake, reportedly amounting to P11 billion.

SM Investments Corp. confirmed the transaction.

“We were informed that the existing shareholders of Ortigas Holdings, which consist mainly of the Ortigas family, exercised their right of first refusal on the shares owned by HSBC,” SMIC said.

The SM Group was initially hoping to finalize a deal to take over the property holding firm of the Ortigas family in the first half this year.

In April, SMIC said it was getting nearer to its bid to acquire a controlling stake in Ortigas Holdings, pointing out financing was ready and that it was just waiting for final instructions.

The deal would have allowed the SM Group to corner the lion’s share of the retail market in the burgeoning Ortigas-Pasig-Mandaluyong area.

ALI said it would allocate an initial amount of P15 billion for this purpose. The development project will include plans for residential, office, retail, and hotel components.

ALI said the partnership in line with the group’s strategy, which includes expanding its operations in key growth centers in Metro Manila. ALI intends to contribute its expertise in building large scale, mixed-use developments to this partnership.

The strategic alliance is expected to generate significant synergies with the other ALI integrated mixed-use communities in key business districts such as Makati, Bonifacio Global City and Quezon City.

“We are privileged to be a part of this strategic alliance. We welcome the opportunity to participate in the development of these key areas in Metro Manila,” said ALI president Antonino T. Aquino. “Many of our successful developments such as the Ayala Alabang, Cebu Park District, Bonifacio Global City, Trinoma, Nuvali, Abreeza Davao, and Centrio Cagayan de Oro were built on strong partnerships with various groups.”

Ortigas & Co. currently owns strategic land bank areas in the Ortigas Business District, Greenhills Shopping Center, Tiendesitas in Frontera Verde, Circulo Verde and Capitol Commons.

The Ortigas district, which encompasses at least 100 hectares, is home to many shopping malls like Robinsons Galleria, Shangrila, Megamall, Podium and St. Francis Square.

Megamall, developed and operated by shopping mall giant SM Prime Holdings Inc., sits on 18 hectares of prime land with a total floor area of about 348,000 square meters. It is currently undergoing renovation and expansion with the three- hectare parking lot in front of EDSA being converted into a commercial and office space for business process outsourcing companies.

The expansion will give Megamall an additional 100,000 sqm of gross leasable area and will make it the largest shopping mall in the country, topping SM City North Edsa.

The Ortigases, whose historic roots date back to the 300-year Spanish colonial rule, are among the largest landowners in the country. They developed upscale residential subdivisions Valle Verde and Wack-Wack as well as the 77-unit Luntala townhouse project within Valle Verde 6.

Aside from the Greenhills Shopping Center, the group’s retail portfolio also includes the 18-hectare Tiendesitas in Pasig.

Ongoing projects by the Ortigas group include Circulo Verde, a 15-tower residential development located on a 12-hectare property in Calle Industria in Bagumbayan in Quezon City and the P25 billion Capitol Commons, which will rise on a 10-hectare property, which was previously occupied by the Rizal Provincial Capitol.


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Monday, June 11, 2012

Stock News 2012: SMIC earmarks P5 billion for hotel project

SM Investments CorporationSM Investments Corporation (Photo credit: Wikipedia)
SM Investments Corp. (SMIC), the holding firm for the various business of the family of the country’s richest man Henry Sy, has earmarked almost P5 billion for the construction of two hotels under the Luxury brand.

Based on documents submitted to the Securities and Exchange Commission (SEC), SMIC has appropriated around P4.93 billion out of the total proceeds from its fixed-rate bond issue for two hotel projects to be built at the Mall of Asia complex and in Looc, Batangas.

A big chunk, or P3.4 billion, will go to Luxury City Hotel, an upscale hotel that will have approximately 400 rooms.

The balance of P1.53 billion will be channeled to the 400-room Luxury Hotel in Santelmo, Batangas. “This will be a resort,” said SMIC chief financial officer Jose Sio.

Sio said the design and costing are still being prepared.

SMIC’s hotels and convention centers segment is aiming to offer 1,000 hotel rooms by 2013.

The group is currently building the P750-million Park Inn Radisson Hotel in Davao City’s Lanang District, the first Park Inn Radisson in the Asia Pacific region.

Targeted for opening in the first quarter of 2013, the 204-room Park Inn hotel will be located within the 175,000-square meter mixed-use complex owned and developed by SMIC’s shopping mall subsidiary SM Prime Holdings Inc.

The Park Inn brand is one of the hotel brands under Carlson and is the largest mid-market brand for hotels under development in Europe.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=815940

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Wednesday, April 25, 2012

Stock News 2012: SM Prime net profit up 15% to P2.43B in Q1

Facade of SM City TarlacFacade of SM City Tarlac (Photo credit: Wikipedia)
SM Prime Holdings Inc., the country’s larger retail landlord, said its net earnings increased by 15 percent in the first quarter of the year to P2.43 billion on the back of higher revenues arising from the addition of new malls and the strong growth of its China operations.

In a briefing following the company’s annual stockholders meeting yesterday, SM Prime president Hans T. Sy said the firm’s “better-than-expected performance is a welcome development and reinforces its confidence in the local economy. He expects the company to sustain its positive momentum for the rest of the year.

Sy said the results also show SM’s ability to thrive in competitive environments in China.

Jeffrey C. Lim, chief financial officer of SM Prime, said consolidated revenues went up by 16 percent to P7.03 billion while EBITDA rose 13 percent to P4.76 billion, resulting in an EBITDA margin of 68 percent. Same store rental growth climbed eight percent, an improvement from the seven-percent growth reported the previous year.

The results include the operations of the four SM malls in China, which are located in the cities of Xiamen and Jinjiang in Southern China, Chengdu in Central China, and Suzhou in Eastern China, Lim said.

The four China malls performed remarkably, with net income growing 44 percent to P140 million on the back of a 34.8 percent jump in gross revenues to P620 million. Lim attributed the robust growth to an increase in average occupancy rate, lease renewals and the opening of a lifestyle mall in Shanghai.

Lim said the malls in China currently have an average occupancy rate of 96 percent.

Consolidated rental revenues contributed 86 percent to the total, increasing by 15 percent to P6.03 billion. Additional rental space came from SM City Tarlac, SM City San Pablo, SM City Calamba, SM City Novaliches, SM City Masinag and the recently opened SM City Olongapo. These malls put in 427,000 square meters (sqm) to the company’s total gross floor area and presently register an average occupancy rate of 93 percent.

http://208.184.76.174//Article.aspx?publicationSubCategoryId=66&articleId=800327

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Tuesday, April 24, 2012

Stock News 2012: SM expects to close Ortigas deal in H1

Picture of the Greenhills Shopping CenterPicture of the Greenhills Shopping Center (Photo credit: Wikipedia)
The SM Group owned by the family of the country’s wealthiest man Henry Sy, said it hopes to finalize a deal to take over the property holding firm of the Ortigas family in the first half this year.

“Negotiations are ongoing but talks are getting nearer and nearer to finalizing a deal, hopefully in the first half. Financing is ready. We’re just waiting for further instructions,” said Sy’s eldest son and namesake, Henry Sy Jr.

The SM Group is in talks with the Ortigas family and British banking giant HSBC, the single biggest shareholder in OCLP Holdings with a 34 percent stake.

SM Investments Corp. (SMIC) executive vice-president Jose T. Sio said the amount and details of the transaction are still under discussion and subject to finalization.

Organized in 2010, OCLP Holdings’s crown jewel is the 16-hectare Greenhills shopping complex.

The deal, when completed, will allow the SM Group to corner the lion’s share of the retail market in the burgeoning Ortigas-Pasig-Mandaluyong area.

The acquisition of a controlling stake in OCLP will also allow the SM Group to tap into the Ortigas family’s vast land in Mandaluyong, San Juan and Quezon City, further broadening its reach in Metro Manila.

The Ortigas district, which encompasses at least 100 hectares, is home to many shopping malls like Robinsons Galleria, Shangri-La, SM Megamall, Podium and St. Francis Square.

Megamall, developed and operated by shopping mall giant SM Prime Holdings Inc., sits on 18 hectares of prime land with a total floor area of about 348,000 square meters. It is currently undergoing renovation and expansion with the three-hectare parking lot in front of EDSA being converted into a commercial and office space for business process outsourcing (BPO) companies.

The expansion will give Megamall an additional 100,000 sqm of gross leasable area and will make it the largest shopping mall in the country, surpassing SM City North Edsa.

The Greenhills shopping center, on the other hand, has become a popular destination for buying gadgets and affordable imported clothes and merchandise. Its main mall, V-Mall (formerly known as Virra Mall), houses five franchises from the SM Group – Toy Kingdom, SM Appliance Center, Our Home, Watsons and Ace Hardware.

The Ortigases, whose historic roots date back to the 300-year Spanish colonial rule, are among the largest landowners in the country. They developed upscale residential subdivisions Valle Verde and Wack-Wack as well as the 77-unit Luntala townhouse project within Valle Verde 6.

Aside from the Greenhills shopping center, the group’s retail portfolio also includes the 18-hectare Tiendesitas in Pasig.

Ongoing projects by the Ortigas Group include Circulo Verde, a 15-tower residential development located on a 12-hectare property in Calle Industria in Bagumbayan in Quezon City, and the P25-billion Capitol Commons, which will rise on a 10-hectare property previously occupied by the Rizal Provincial Capitol.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=799998

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Monday, January 30, 2012

Stock News 2012: SMIC, major units bag top award anew

SM Investments CorporationSM Investments Corporation (Photo credit: Wikipedia)
For the third consecutive year, SM Investments Corp. (SMIC) won The Asset Platinum Corporate Award 2011 for all-around excellence in management, financial performance, corporate governance, social responsibility, environmental responsibility, and investor relations.

The highly prestigious Platinum Corporate Award was given to only 19 companies from Asia, which include, aside from SMIC, two other SM Group companies, namely SM Prime Holdings Inc. and BDO Unibank Inc.

The recognition was given by The Asset Publishing and Research Ltd, a Hong Kong-based multimedia entity serving the Asian financial markets and publisher of The Asset magazine. Platinum is the highest category under The Asset’s awards program.

“It is once again our honor and privilege to win The Asset’s Platinum Corporate award. It is indeed a fitting recognition of SM’s firm commitment to sound management and responsible corporate citizenship. We sincerely offer the award to our shareholders, clients, employees, and other stakeholders, for whom we undertake to continue implementing rigorous management practices,” SMIC president Harley T. Sy said.

“The criteria used to assess the companies include a range of metrics of financial performance, which are also a proxy for gauging management acumen,” The Asset explained.

“Since the purpose of the awards is also to recognize the importance of sustainable growth, companies are also evaluated according to the quality of their corporate governance, social responsibility, environmental responsibility, and investor relations,” it added.

http://www.philstar.com/Article.aspx?articleId=772510&publicationSubCategoryId=66

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Monday, September 27, 2010

Stock News 2010: SM Prime allots P24 billion for 4 new malls in China

SM City Cagayan de OroImage via Wikipedia
Xiamen — SM Prime Holdings Corp. is ratcheting up its expansion across China with around RMB 3.58 billion (roughly P24 billion) allotted for the construction of four new malls slated for opening between 2010 and 2013.

Diane R. Dionisio, vice-president for finance of SM Prime’s China projects, said the group is stepping up its presence in the world’s second largest economy with plans to build its biggest shopping mall ever in Tianjin, the sixth largest city of the People’s Republic of China.

Dionisio said the SM Tianjin will rise on a 43-hectare property that would have approximately 530,000 square meters of gross floor area, about 30 percent bigger than its Mall of Asia on Roxas Boulevard. Targeted for opening in 2013, SM Tianjin will be built at a cost of RMB 2 billion (P13.4 billion), the highest investment ever to be made by the group.

The 70,000 square meter SM Suzhou with a development cost of RMB 450 million, is scheduled to open in December this year to be followed by SM Chongqing in the fourth quarter of 2011, SM Tianjin and SM Zibo in central Shandong province, both in 2013.

SM Prime has earmarked RMB 500 million for the construction of the Chongqing outlet which will have a gross floor area of 150,000. Around RMB 630 million has been set aside for SM Zibo with an estimated gross floor area of 170,000 square meters.

When completed, these malls would bring SM Prime’s total store network in China to eight. SM Prime entered China in 2007 after buying billionaire Henry Sy’s malls in Xiamen, Jinjiang and Chengdu for $252 million.


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